HypnosisThere's too much about you and the specific VARIABLE ANNUITY contract you have that I don't know for me to be able to give you any specific advice.One thought I might present is: "Why not roll the dice a bit?" Since you don't need to make any withdrawals, and since you are guaranteed the death benefit, what do you have to lose? If you consider this strategy, I would urge you to call the VARIABLE ANNUITY company and ask if they have a minimum balance, under which, they can force liquidation of the contract. Some do. Let's say, somewhere in the fine print is a phrase that says something like: "If account balance falls below $5,000, then the company, at its option, may force liquidation of the contract". If your VARIABLE ANNUITY contract has a clause like this, then a "roll the dice" strategy must keep it in mind.Another thought is: "If you liquidated the VARIABLE ANNUITY, then using the proceeds, how much fully paid up life insurance will this $20,000 buy you?" If you are healthy, you may be able to buy as much (or more) whole life insurance as what your VARIABLE ANNUITY contract promises. A physical would be required, in all likelihood. But....if you were able to have a paid up policy for the $42,000 then perhaps you could take a loan against the policy for most of the $20,000 and invest it anyway you really want to and not lose the other $22,000 for your heirs [caution, one has to be careful of the policy loan amount not being so high as to kick the policy into being considered as a MEC, by the IRS. Your insurance agent and accountant can help explain this and steer you clear of it]. If this strategy is considered at all, the advice of an insurance professional should be sought. One could apply for the new policy, go through the physical and insurance underwriting to get an answer before having to liquidate the VARIABLE ANNUITY contract. If asked for, life insurance rate quotes based on full underwriting can be held for 30-60 days, more than long enough to get the cash from the old contract. There are flaws with both lines of thinking, but I just thought I'd present them since you asked for ideas.PosFCF
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